Price Resistance

Definition ∞ Price resistance is a technical analysis term indicating a price level where a cryptocurrency or asset has historically faced selling pressure, preventing further upward movement. This level acts as a ceiling, suggesting that demand weakens and supply increases significantly at that particular price point. Traders use resistance levels to identify potential points of trend reversal or consolidation.
Context ∞ Current market analysis often focuses on identifying key price resistance levels for major digital assets and assessing the probability of breaking through them. Debates frequently arise concerning the psychological impact of these levels on trader behavior and their predictive accuracy in volatile markets. A critical future development to watch is the impact of large-scale market events or regulatory news on the established price resistance zones.